Streamlined operations and tighter cost controls resulted in improved margins at Champion Technology Holdings, which reported interim profit rising 47 per cent on a 32 per cent increase in turnover. The telecommunications and paging services company attributed the jump in turnover to vertical integration of its equipment manufacturing, network operation, telecom services, software development and distribution. The margins were boosted by savings through volume purchases of components and effective controls on manufacturing and distribution overheads, chairman Paul Kan Man-lok said. Profit for the six months to December 31, was $112.9 million, compared to $76.66 million for the same period a year earlier - in line with analyst expectations. Turnover was $467.38 million, up from $355.24 million. Last year, the company's shares plunged nearly 57 per cent in three weeks after reporting an unexpected 11.2 per cent fall in interim profits. Some analysts remain concerned about the company's lack of transparency, but Mr Kan was confident about its prospects. 'Barring unforeseen circumstances, the group's full-year results are expected to benefit from improved economic conditions in Asia, the traditionally better second-half contribution from [British subsidiary] Multitone's European markets and further progress in cost control,' Mr Kan said. Earnings per share rose 32 per cent to 7.5 cents, from 5.7 cents. The company declared an interim dividend of 1.3 cents, about 13 per cent more than the previous year. Shareholders have the option of receiving the dividend in cash or as new shares, but Mr Kan does not expect this to dilute the shares. Champion, which does business in more than 40 countries on five continents, has finalised joint-venture pager manufacturing agreements in China and India, which are expected to improve its competitiveness and broaden its customer base. Not all analysts were convinced by Mr Kan's optimism. 'With Champion, you have no idea what you will have when you wake up the next day. They dilute earnings and they don't tell you how they make money,' an analyst said.